There is renewed debate about how election campaigns should be funded in New South Wales following damaging allegations at the Independent Commission Against Corruption (ICAC).

Premier Mike Baird says he is appalled and shocked by allegations of illegal Liberal party donations that have emerged.

The latest ICAC inquiry is focusing on three state Liberal parliamentarians accused of failing to disclose political donations - Chris Hartcher, a former energy minister, Darren Webber and Chris Spence, who are all from the Central Coast.

A NSW Liberal MP, Marie Ficarra, stood aside yesterday after being implicated in a scheme to solicit donations for the party that is at the centre of the inquiry.

Mr Baird says he wants to overhaul the state's political culture and today restated his support for public funding of election campaigns.

He has asked the state Liberal Party director Tony Nutt to address any illegal payments.

"I've said we need to look at it. But I won't do policy on-the-run. We need to consider all of the ramifications of what we're seeing and hearing," he said.

"We will fix this. We are determined to get rid of the activities that we've seen and we will be ensuring that our response will be considered. It will be strong and it will ensure that what we have seen does not happen here again in NSW."

It's not going to stop the backroom deals that are being done and are being exposed now.

Rob Oakeshott, former Independent MP

But former state and federal Independent Rob Oakeshott is scathing about the revelations currently playing out in NSW.

Mr Oakeshott says public funding is not the solution.

"It's not going to stop the backroom deals that are being done and are being exposed now," he said.

He says the "least imperfect" solution is to ensure there is immediate disclosure of donations.

Greens MP John Kaye says Parliament should act to ensure that there is immediate disclosure of all donations of more than $100.

"Let's make sure that it's a fair funding system - a system that doesn't shut the door on small parties," he said.

"People have a right to know when they vote where the money came from for the advertising campaign."

Mr Kaye says currently there is a delay of almost 11 months between donations being received and when they are declared on a party's website.

Meanwhile the State Opposition is demanding proof that the Premier is serious about cleaning up politics across the state.

Labor leader John Robertson says everything should be on the table, but he says there are things Mr Baird can do today.

"The first is, by the close of business, ensure the (Liberal Party's) Millennium Forum and the Free Enterprise Foundation are no longer operational," he said.

"Secondly he needs to commit to releasing Tony Nutt's internal audit of all Liberal party donations."